Today’s links The one weird monopoly trick that gave us Walmart and Amazon and killed Main Street: The Robinson-Patman Act is how we make sure companies aren’t too big to jail nor too big to care. Hey look at this: Delights to delectate. This day in history: 2004, 2009, 2014, 2019, 2023 Upcoming appearances: Where to find me. Recent appearances: Where I’ve been. Latest books: You keep readin’ em, I’ll keep writin’ ’em. Upcoming books: Like I said, I’ll keep writin’ ’em. Colophon: All the rest. The one weird monopoly trick that gave us Walmart and Amazon and killed Main Street (permalink) Walmart didn’t just happen. The rise of Walmart – and Amazon, its online successor – was the result of a specific policy choice, the decision by the Reagan administration not to enforce a key antitrust law. Walmart may have been founded by Sam Walton, but its success (and the demise of the American Main Street) are down to Reaganomics. The law that Reagan neutered? The Robinson-Patman Act, a very boring-sounding law that makes it illegal for powerful companies (like Walmart) to demand preferential pricing from their suppliers (farmers, packaged goods makers, meat producers, etc). The idea here is straightforward. A company like Walmart is a powerful buyer (a “monopsonist” – compare with “monopolist,” a powerful seller). That means that they can demand deep discounts from suppliers. Smaller stores – the mom and pop store on your Main Street – don’t have the clout to demand those discounts. Worse,…Pluralistic: The one weird monopoly trick that gave us Walmart and Amazon and killed Main Street (14 Aug 2024)